ZG Group (6676) H2 2024 earnings summary

Executive summary

• Achieved 32.7% year-over-year revenue growth to RMB1,551.0 million, driven by overseas expansion and digital platform services.

• Gross profit increased 12.1% to RMB426.2 million, with adjusted EBITDA up 56.1% to RMB7.1 million.

• Net loss narrowed significantly by 85.4% to RMB68.7 million from RMB469.0 million in 2023.

• Completed a De-SPAC transaction and listed on the Hong Kong Stock Exchange in March 2025.

Financial highlights

• Revenue: RMB1,551.0 million (up 32.7% year-over-year).

• Gross profit: RMB426.2 million (up 12.1% year-over-year).

• Adjusted EBITDA: RMB7.1 million (up 56.1% year-over-year).

• Net loss: RMB68.7 million (improved from RMB469.0 million in 2023).

• Operating cash flow: RMB419.9 million (up 98.4% year-over-year).

• Gross profit margin: 27.5% (down from 32.5% in 2023).

• Adjusted net income (excluding non-core items): RMB13.5 million in 2024 (vs. adjusted net loss of RMB82.4 million in 2023).

Outlook and guidance

• Plans to further optimize supply chain management, expand global presence, and enhance digital capabilities.

• Focus on high-value product deployment and green building materials.

• Continued investment in AI-driven automation and international business expansion.